South Africa's Investec posts profit slip, boosts dividend

South Africa's Investec INL posted a 0.8% slip in half-year profit on Thursday but the bank and wealth manager declared a higher interim dividend than a year earlier.

It reported headline earnings per share of 36.6 pence for the six months to Sept. 30 versus 36.9 pence in the previous first half. It announced an interim dividend of 16.5 pence per share, up from 15.5 pence.

Its performance was impacted by discontinued operations but buoyed by growth in lending and higher interest rates, the bank said in a statement.

Group revenue rose by 5.6% to 1.1 billion pound ($1.39 billion), benefiting from balance sheet growth, a strong performance from client franchises and elevated interest rates, it said.

Its credit loss ratio (CLR) - a measure of bad loans versus total loans - increased to 42 from 32 basis points a year earlier, towards the upper end of its targeted range of 25-45.

The bank, which also operates in the UK INVP, opened an office in Dubai's financial centre in September to serve wealthy families and individuals in the region.